Doing business

Norway

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Limited Company (Aksjeselskap, AS) NOK 100,000	No minimum. Liability is limited to the amount contributed.
Public Limited Company (Allmenne aksjeselskap, ASA) NOK 1 million	No minimum. Liability is limited to the amount contributed.
General Partnership w. shared liability (Ansvarslig selskap med delt ansvar, DA) No minimum capital.	Minimum: 2 Unlimited, but each owner is responsible for debt corresponding to his/her share of the ownership
General partnership (Ansvarslig selskap, ANS) No minimum capital.	Minimum: 2 Liability is unlimited.
Sole proprietorship (Enkeltmannsforetak) No minimum capital.	Only 1 person. Liability is unlimited.

Business setup procedures

Setting up a company	Norway	OECD
Procedures (number)	5.0	5.6
Time (days)	7.0	13.8

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Norway.
Trade Register
The competent organization: Brønnøysund Register Centre maintains open annual accounts on all Norwegian companies.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	7,981	14,074	11,857
FDI stock (millions USD)	109,432.3	147,108.1	171,833.4
Performance Index*, ranking on 141 economies	110	86	-
Potential Index**, ranking on 141 economies	12	-	-
Number of Greenfield investments***	45	30	-
FDI inwards (in % of GFCF****)	8.3	11.8	-
FDI stock (in % of GDP)	24.3	30.4	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Norway

Strong points

Norway has a very strong economy and positive prospects. The country is a world leader in information, with a both stable and transparent political environment. Norway has a well organized public sector and quality infrastructures. The population enjoys a high purchasing power and the business environment is stable and investments on the increase (even though dominated by the energy sector). Norway has a highly skilled labor force, which means there is great growth potential in services and knowledge based industries, such as information and communications technologies.
The best business opportunities are consumer goods, information and communications technologies, construction and corporate services.
Numerous contracts are awarded in Norwegian oil and gas projects. The domestic market is limited, but Norway can be an attractive business base for market operations in the Nordic countries, Baltic countries and Western Russia.

Weak points

Norway's economy is dependent on the price of oil. Norway is already past the peak of its oil production.
The fact of the geographical isolation of some parts of the country, the expenses in the areas of transport, logistics, and telecommunication infrastructures are very high.
Lastly, the country has implemented relatively strict laws in the area of employment. The country also has extremely high salary costs.

Government measures to motivate or restrict FDI

The government maintains an open position towards foreign investment in Norway. Norway offers no significant tax incentives for investors (whether foreign or domestic). Some benefits such as lower social security payments, lower tax rates and extra deductions for individuals, apply to investments made in the less populated areas in the north of Norway. Some existing regulations, standards and practices may marginally favor Norwegian, Scandinavian or EEA investors.

Innovation Norway is a government agency designed to assist businesses by offering financing through Norwegian Industrial and Research Development Contracts.

Special restrictions apply in the following sectors:
- Acquisition of waterfalls, power supply rights and mining rights;
- Acquisition of land, real estate and long term leases;
- Acquisition of farmland and forests;
- The purchase of over 10 % of the capital stock of a Norwegian financial institution;
- Direct investments in petroleum exploration and exploitation are subject to a government license.

Regarding the financial crisis, fiscal policy has been very strong so far. However, because of the the losses suffered by the pension fund in 2009, the government remains cautious.

Bilateral investment conventions signed by Norway

Norway has signed bilateral investment treaties with several countries. A list can be found here.

Procedures relative to foreign investment

Freedom of establishment: Guaranteed.
Acquisition of holdings: A majority holding in a Norwegian company is legal.
Obligation to declare: No specific text of law regulates foreign direct investments.
Competent organization for the declaration: Ministry of Finance
Ministry of Trade and Industry
Requests for specific authorizations: Following sectors require specific authorization:
- Acquisition of waterfalls, power supply rights and mining rights.
- Acquisition of land, real estate and long term leases.
- Acquisition of farmland and forests
- Purchasing over 10 % of the share capital of a Norwegian financial institution.
- Direct investments in petroleum exploration and exploitation are subject to a government licence

If an investment requires a permit, the applicant should contact the Ministry of Trade and Industry.

Finding assistance for further information

Investment aid agency: Information about financing and support is available at Bedin.no
Other useful resources: Oslo Chamber of Commerce
Innovation Norway
Kvasir Business Search Engine (in Norwegian).
Nortrade - Official Norwegian Trade Portal
Business Guide to Oslo Region
Norway.com Business Center